HBS Guides · Licences

The licence follows
the activity.

You do not choose a licence type in Dubai; your activity chooses it for you. What you do choose is the activity list, and that is the decision that quietly limits what you can invoice for.

Updated 8 min read

4 families
Commercial, professional, industrial, tourism
2,000+
Approved activities, each mapped to a licence type
Freelance
A permit in your own name, not a company
A licence and the activities it covers Line drawing of a certificate with a seal, beside small icons for a shop, a laptop, a factory and a suitcase.

Key figures

4Licence families, before any external approvals are added
1–3 wksIssue time where no external approval is needed
+2–8 wksAdded by a regulator approval such as health, media or transport
1 yrStandard licence term, renewable, with penalties for lapsing

Licences and permits

The four families

Every activity on the approved list maps to a licence family. The family determines what else you need: a professional licence rarely needs much beyond the licence itself, while a commercial one trading physical goods drags in customs registration, and an industrial one drags in a good deal more.

Activity to licence family Decision tree. The activity you will invoice for determines whether you need a commercial, professional, industrial or tourism licence, each with typical examples. Activity to licence family What will you invoice for? Commercial Trading goodsE-commerceGeneral trading Professional ConsultingIT and designMarketing Industrial ManufacturingAssemblyPackaging Tourism Travel agencyTour operatorHoliday homes Some activities need approval from a sector regulator on top of the licence.
The activity determines the family, and the family determines which regulator has to sign off before the licence is issued.

The activity list is the real decision

The licence type is a consequence. The activity list attached to it is the choice, and it is read literally. If your licence covers management consultancy and you invoice for software development, that invoice is outside your licence — which matters at audit, at the bank, and when a client's procurement team checks your trade licence before paying.

Two rules that save money later. Add the activities you will plausibly need within two years at the outset, because adding them later means an amendment fee and, sometimes, a different licence family. And do not add dozens speculatively: some combinations force a higher-tier licence or trigger an approval you do not want.

Certain activities cannot be combined at all. Trading and professional services usually sit under different licences, and a business doing both often needs two licences or a restructure.

External approvals, and what they cost in time

The licence application itself is fast. What extends it is a sector regulator with its own file to review, and whether one applies is a function of the activity, not the zone.

ActivityTypical additional approvalEffect on timing
Clinics and medical servicesHealth authority licensing, per practitionerSubstantial — plan in months
Food and restaurantsFood safety, municipality inspection of premisesTied to the fit-out, not the licence
Media and advertisingMedia regulator approvalWeeks
Education and trainingEducation authority permitWeeks to months
Transport and logisticsTransport authority permitWeeks
Real estate brokerageRERA registration and broker cardsWeeks, plus individual exams

The pattern worth internalising: activities touching public health, public safety, public messaging or money get a second regulator. Everything else usually does not.

The freelance permit

A freelance permit licenses you, not a company. You invoice in your own name under a permit issued by a free zone, and it is materially cheaper than a company licence.

It fits a single professional selling their own time — a developer, a designer, a consultant, a photographer. It does not fit a business that needs to hire, hold significant contracts in a corporate name, or present as a company to enterprise procurement teams, which frequently will not onboard an individual.

Most permits can sponsor a residence visa for the holder, and some allow family sponsorship. The usual progression is a freelance permit in year one and a company once there is a second person or a client who insists on contracting with an entity. Moving from one to the other is straightforward; what is not straightforward is novating a set of signed contracts, so plan the switch at a renewal rather than mid-engagement.

Renewals, amendments and lapses

Licences run for a year. Renewal is administrative provided the underlying pieces are current — the tenancy registration, the establishment card, and any external approval all have their own expiry dates, and a lapse in any of them blocks the renewal.

A lapsed licence is not a neutral state. Fines accrue, visas attached to the company are affected, and the bank may freeze the account on a compliance check. Recovering from a long lapse costs considerably more than the renewal did.

Amendments — adding an activity, changing shareholders, moving premises, changing the name — each have their own process and fee. Batch them where you can: several changes submitted together usually cost less in fees and far less in time than the same changes made one at a time across a year.

Licences, approvals and renewals are handled at /en/corporate-services/company-formation/, and the filings that follow from them in the tax guide.

FAQ

Questions we are asked

What is the difference between a commercial and a professional licence?
A commercial licence covers buying and selling goods, including trading and e-commerce. A professional licence covers services delivered by skill or expertise, such as consultancy, design or IT. The distinction affects ownership rules on the mainland, the approvals required, and whether customs registration is needed.
Can I add activities to my licence later?
Yes, through an amendment with its own fee. The complication is that some additions push you into a different licence family or trigger an external approval, which turns a simple amendment into a longer process. Adding the activities you expect to need within two years at the outset is usually cheaper.
Is a freelance permit enough to get a residence visa?
Most freelance permits sponsor a residence visa for the holder, and some allow family sponsorship. Check the specific free zone, because terms differ. If you need to sponsor staff or a larger family, a company licence with a visa quota is generally the better route from the start.
How long is a Dubai licence valid?
One year, renewable. Renewal depends on the tenancy registration, the establishment card and any sector approval all being current, so a lapse in one of those blocks the whole renewal. Fines accrue on a lapsed licence and visas attached to the company are affected.
Do I need approval from a regulator?
It depends entirely on the activity rather than the free zone. Activities touching public health, safety, media or education generally need a sector regulator to approve the file alongside the licensing authority. Most consulting, trading and IT activities do not, which is why they are issued fastest.

Licences with HBS

Send us the activity, we will send back the licence.

Describe what you will invoice for in plain language. We map it to the activity list, tell you which approvals apply and what the timing looks like.

Company formation
Call